Can the approved location for an Aerus franchise be used for any business other than the Aerus franchised business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Exclusivity and Non-Competition.
- A. During the Term, neither Franchisee, nor its Operating Principal, or any other owner, shall (1) promote the sale of, or sell, directly or indirectly, any products or services that are similar in nature to, or that are substitutes for, the Products, (2) undertake or participate in any business or activity that is competitive in nature with the System or any of the Products, or with Company's, or any of Company's Affiliates', now existing or hereafter developed businesses or systems, or (3) use any of the Customer Data for any reason other than operation of the Franchised Business. Further, the Approved Location may be used for the operation and conduct of the Franchised Business only and for no other use. Franchisee may not use the Marks in connection with any business or activities other than the Franchised Business. Company may in the future modify, expand or supplement the System or modify or add to the Products offered hereunder and Company or any of Company's Affiliates may in the future develop or offer new businesses or systems. In either event, if Company determines, in its reasonable discretion that any behavior of Franchisee previously not in violation of this Section later violates this Section, Company may require that Franchisee cease any such behavior upon written notice to Franchisee.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the approved location for an Aerus franchise is exclusively for the operation and conduct of the Aerus franchised business. The FDD states, "Further, the Approved Location may be used for the operation and conduct of the Franchised Business only and for no other use." This means a franchisee cannot operate any other type of business from the approved location.
This restriction ensures that the franchisee focuses solely on the Aerus business, maintaining brand consistency and preventing conflicts of interest. It also protects Aerus's brand image and operational standards, as the location is dedicated to promoting and selling Aerus products and services.
This requirement is fairly standard in franchising, as franchisors typically want to ensure that the franchisee's efforts are entirely focused on their brand. A prospective Aerus franchisee should consider this restriction when evaluating potential locations, ensuring that the space meets their needs exclusively for the Aerus business.